Sixth South Asia Region Public Procurement Conference: Professionalization of Public Procurement for Better Performance

Country Presentation - Nepal Public Procurement Monitoring Office, Kathmandu, Nepal Dilaram Giri Director

Nepal at a Glance Type of Information Fact and Figure Area 147,181 sq. km. Capital City Kathmandu Population (2018) 28.64 million Languages Nepali and more than 123 regional and indigenous languages. GDP (2018) $1003.36 billion GDP Growth (2018) 5% Government Expenditure (F/Y 2017/18 A.D ) US $10.84 billion Revenue (2017/18) US $7.26 billion Govt. spending % of GDP 22% Govt. Procurement % of GDP 15 percent Per capita GNP (2018) $862 Inflation (2018) 6%. Government Expenditure (F/Y 2016/17) US $10.48 billion)

Recent Activities and Achievements (2018 and 2019) - Content Legislative and Regulatory Developments Status of Introduction and Operationalization of Electronic Government Procurement (e-GP) Status of Public Procurement Professionalization and capacity building Public Procurement Performance Measurement Major Issues, Challenges and Solutions Key activities planned for next two years PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Legislative and regulatory developments A Draft of Amendment in PPA and PPR submitted to GON Prepared Standard framework Agreement Document & guidelines Prepared standard Designed and Built Documents Also prepared the standard turnkey Bid Documents Finalize the work through user committee guidelines Prepared the technical notes of Evaluations process PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Functional Coverage of National e-GP system User Registration Online MPP/APP Management e- Bid Publishing e-Submission e-Bid Opening Online evaluation Contract Awarding e-Contracting Public Procurement Management Information (PPMIS) System Banking Interface for Securities/Guarantee Verification Integration with Other Systems e-Catalogue Complaint Management Notification

e-GP System Modules Interactive Modules PPMIS User’s Modules Public Entity’s Module Bidder’s Module Banker’s Module Interactive Modules Public Entity's Module Oversight Module PPMIS User’s Modules

Legal Ground for Electronic Government Procurement Public Procurement Act 2063 - Clause 69 Public Procurement Regulation 2064 - Rule 146 As prepared in the mentioned act and regulation, PPMO has compulsorily developed single portal eGP-system which is currently being executed.

Stakeholders of e-GP System

Functional Coverage of e-GP System Public Entity & User Registration Procurement Plan Management Preparation, & invitation for Bid Bid Response Preparation & Submission Bid Opening Bid Evaluation Contract Awarding Contract Management Common Procurement Vocabulary Public Procurement Management Information System (PPMIS) Banking Interface for Securities/ Guarantee Verification Complaint Management Notification

Bid Document Preparation – Business Flow

Improved regulatory compliance Benefits of e-GP System Improved regulatory compliance Minimized collusion and intimidation and improved transparency Easy access of national and international bidders in procurement Reduced turn around time of procurement cycle & improved process efficiency Consolidated database of Contractors/Suppliers/ Consultants profile helps in future to monitor bid capacity Procurement information (PPMIS) – easy monitoring & analysis and effective decision making

Status of e-GP System Phase-I Phase-II 7000+ Users Trained 4800+ PE Users 2100+ Bidders 170+ Bank Users 24 Training of Trainers 791 PE Registered 10975 Entities Registered 1965 PE Registered 8982 Bidders Registered 28 Banks Registered 5539 Bidders Registered 29556 Bids Published 7000+ Bids Published Goods- 2179 Works- 4914 Consultancy- 156

Way Forward Massive Procurement Management Training up to local level including e-GP Strengthen Monitoring Capacity of PPMO with additional experts Preparation of Procurement Guideline, SBDs for new Procurement method & procedures Mainstreaming of all sectors towards the use of national e-GP System Support, Enhancement and Upgrading of Infrastructure of e-GP based on the uses Integration of e-GP system with oversight agencies and Sectoral Agencies e-Payment Accreditation of Procurement Professional

Open Contracting in Nepal Public Procurement Transparency Initiative in Nepal (PPTIN) Initiative to open up public procurement data in collaboration with Open Contracting Partnership Open up procurement data from the e-GP database following OCDS standard Connecting demand and supply side actors for larger procurement reform agenda Publication/disclosure, participation/use of public procurement data Feedback and redress Information on all stages of Public Procurement Planning, Bidding, Awarding, Implementation, Closure Satisfying user need and global interoperability

PPTIN in Action Supply side Demand Side Public Agency Decision Makers Public Entity 1 Open Contracting Portal using OCDS (Open Procurement Data) Procurement data in centralized e-GP System Media Public Entity 2 Civil Society Public Entity n Private Sector Supply side Demand Side

Open Contracting Portal (www.ppip.gov.np)

User Support for e-GP Dedicated Help Desk of 4 staffs for user support International consultant with 8 experts for operation and maintenance of e-GP system IT Section with 6 IT staffs for ICT operation in PPMO

Issues Raised by Municipalities   Issues Raised by Municipalities Sometimes, bid price amount quoted by the bidders displayed outside and in the BOQ are different. In such cases, BOQ amount were considered. Sometimes, after data entry, the system becomes slow and it takes time to post the entry. Sometimes entered data are lost and new entry is required. Sometimes, commercial banks delay in confirming the bid security through the online system. Previous year’s procurement plan (PP) can’t be seen in the e-GP system. If it’s missed to print out, the IA can’t see it in the system. In the PP in e-GP, there are two rows reflecting planned dates and actual dates. For an activity with ongoing bidding for which actual dates are yet to be entered, the system already puts the planned dates in the cells of actual dates. Internet Problems: Except in main cities WIFI and 3G not working or it’s very slow. But less effect on e-GP system.

Current Initiatives Legislation, Regulation & Policy change with modernize procurement tools and best practices i.e catalog shopping, framework agreement, two envelop procedure Implementation of National e-GP System up to local level MoU Signed with Central Bank and 29 all commercial Bank for issuance and verification of securities and guarantees through e-GP Open Contracting - Public Procurement Transparency

Strategy adopted for Implementation National e-GP System National e-GP System Implementation Infrastructure Capacity Development (Continuously carried out) Government & Institutional Leadership Legislation, Regulation & Policy change (in Place)

Future Enhancement Plan One of the sub-component of IPFMRF Requirement of hardware/software for enhancement is being done Existing Contract Management Module will be enhanced Templates for new procurement methods will also be incorporated Provision to include Development Partner's SBDs

Status of E-GP Introduction and Operationalization 2013-2017 Development of Full-fledge national e-GP System Rolled out National e-GP More than 2085 public entities procure through E-Gp More than 9675 bidder actively bidding through the system PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Status of Public Procurement Professionalization and Capacity Building Basic training held on Public procurement for procurement unit chief of Different Gon Agency Basic training held on Public procurement for Bidder E-GP training for GON staff and bidder Training held on recurring issue and its remedies for PES PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Major Issues and Challenges In Public Procurement Management Contract Administration, Quality of Works and Timeliness Adaption of New procurement Tools Harmonization of Public Procurement Act and Regulation in case three tire government Inadequate skilled professionals and frequent turn-over of key officials In the Implementation of e-GP System Sustainability , Reliability , Security Technical support in the initial phase. Development of new procurement templates in e-GP system In Capacity Development & Resource Mobilization Inadequate Procurement Management Training including e-GP to stakeholders (Civil Society, Mass Media, Private Sector, Oversight Agencies, Public Entities) Human Resources (Retention, Career Development) PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Solutions Massive Procurement Management Training up to local level including e-GP Strengthen Monitoring Capacity of PPMO with additional experts Preparation of Procurement Guideline, SBDs for new Procurement method & procedures Mainstreaming of all sectors towards the use of national e-GP System Support, Enhancement and Upgrading of Infrastructure of e-GP based on the uses Integration of e-GP system with oversight agencies and Sectoral Agencies e-Payment Accreditation of Procurement Professional PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

Key activities planned for next two years (2019 and 2020) Development of module EGP on Framework Agreement . More than 300 GON staff will trained on Public procurement with support of ITC/ILO Turin Basic procurement training provides to 1200 local provincial government officials Accreditation of Procurement Professional Integration of e-GP system with oversight agencies and Sect oral Agencies Implement Contract management through e-GP system with Payment Management Making the user registration in EGP platform mandatory and subsequently rolling out the epayment system PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

धन्यवाद Thank you !!! PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

welcome to you in nepal

PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008

PPA - Public Procurement Act 2007 And PPR - Public Procurement Regulation 2008